answer the following questions

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1. What is the difference between Direct effects and Indirect effects of Goals on choice of strategy? Explanation by using examples is mandatory.

2. What is framing and how frames work in negotiation. Describe an example.

3. Exercise 1. See attached file.

Exercise 1 Instructions: According to the content of this exercise 1, apply the planning process for that negotiation by following all the points quoted on page 97 (Getting ready to implement the strategy. The planning Process). Please, assume any information or data omitted in the content at your best convenience to cover all the components of the planning process.

Do not forget to answer the following questions: What is the frame for this negotiation? What are some misperceptions and cognitive biases in this negotiation?

4. Exercise 2. See attached file.

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Exercise 11 Twin Lakes Mining Company Introduction In this role-play you wil have the opportunity to negotiate a serious problem-a conflct between a mining company and the government of a small city regarding an environ- mental cleanup. While the issues in this scenario have been simplified somewhat for the purpose of this role-play, such conflicts between industry and governmental groups are typical throughout the country. Try to introduce as much realism into this situation as you can, based on your own personal experiences. Background Information The Twin Lakes Mining Company is located in Tamarack, Minnesota, in the northern par of the state. It was established there in 1961. The city of Tamarack has a year-round population of approximately 18,000. Although there is a growing revenue that accrues to the city as a result of heavy summer tourism (summer homes, fishing, etc.) and several cottage industries, Tamarack is basically a one-industr city. Twenty-five hundred people, 60 percent of whom live within city limits, work for the Twin Lakes Mining Company; 33 percent of the city's real estate tax base of about $5 millon consists of Twin Lakes Mining Company property and operations. Both in terms of direct tax revenue and indirect contribution to the economic stability of the local population, Tamarack is strongly dependent on the continued success of the Twin Lakes Mining Company. The Twin Lakes Mining Company is an open-pit, iron ore mine. Open-pit mining consists of strpping the topsoil from the ore deposit with the use of power shovels. Train rails are then laid, and most of the ore is loaded into railroad cars for transportation to a central collecting point for rail or water shipment. As mining operations progress, rails are relaid or roads constrcted to haul ore by trck. The ore is transported to a "benefication plant" located on the outskis of Tamarack. Benefication of ore involves crushing, washing, concentration, blending, and agglomerating the ore. In the early days of ore production, such treatment was unnecessar; however, benefication is necessar today for several reasons. First, transportation costs of rejected material (gangue) are minimized. The crude ore may lose as much as one-third of its weight in grading, and, in addition, impurities are removed at a much lower cost than if removed during smelting. Second, ores of varous physical and chemical properties can be purified and blended during this process. Finally, fine ore materials, which previously may have been rejected as a result of smelting problems, can now be briquetted and pelletized to increase their value. After the ore proceeds though this process of cleaning and agglomerating into largerlumps or pellets, it is shipped by railroad car to steel mils throughout the Midwest. Rejected materials are retured to "consumed" parts of the mine, and the land is restored. Twin Lakes' benefication plant is located approximately five miles outside of Tamarack. As a result of the expansion of the residential areas of the city, summer 514 Twin Lakes Mining Company 515 home development, and various Twin Lakes operations, the plant has become a major problem for local citizens. For years, the Tamarack City Council has been pressing the company to clean up the most problematic operations. While most of these discussions have been amicable, Twin Lakes has done little or nothing to remedy the major concerns. Now, as a result of more stringent environmental laws and regulations, Twin Lakes has come under pressure from both the state of Minesota and the federal government for environmental cleanup. Both the state and the federal Environmental Protection Agency have informed Twin Lakes that the company is in major violation of water and air pollution quality standards, and that immediate action must be taken. Twin Lakes' estimates indicate that total compliance with the cleanup regulations wil cost the company over $36 milion. Because Twin Lakes is now mining relatively low-grade ore and because foreign competition in the steel market has significantly eroded the demand for ore, environmental compliance may seriously influence the profitability of the company. Many local citizens, as individuals and through the local chapter of the United Mineworkers Union, are putting significant pressure on the City Council to help the Twin Lakes Company in its environmental cleanup operations. The imposition of the environmental controls on Twin Lakes, and the resulting pressure from all segments of the community, have led to renewed discussions between company offcials and the City CounciL. As a result of these discussions, the following environmental issues have emerged: \ 1. Water quality: The Twin Lakes plant requires large amounts of water to wash the crushed ore. In addition, much of the highest-quality ore is reduced to an almost powderlike texture after washing and is being lost in the washing operation. As a result, the company has built a series of settlement recovery ponds alongside Beaver Brook near the plant. Water that has been used for washing ore is aiiowed to stand in these ponds; they are periodically drained and the ore recovered. Nevertheless, granules of iron ore and other impurities continue to wash downstream from the plant. The environmental agents have insisted that the effuent from the plant and the ponds be cleaned up. Estimates for the cost of a filtration plant are $20 milion. Twin Lakes claims that it cannot afford to build the plant with its own revenue. Since Tamarack has periodically talked about Beaver Brook \i \ as a secondar water source for the city (and residential development makes this a \ more pressing concern in two to three years), the Twin Lakes offcials hope that they might interest Tamarack in a joint venture. i 2. Air quality: The entire process of mining, transporting, and crushing ore generates large amounts of dust. This has significantly increased the levels of particulates in the air. In addition, during the dry summer months, the operation of many large trucks along dirt roads intensifies the problem considerably. Twin Lakes believes that it can control a great deal of the dust generated immediately around the plant at a cost of approximately $8 milion. The most significant debate with the city has been over a series of roads around the city outskirts. Approximately half of the roads are city owned; the rest have been specially constructed for the transporttion of ore and material. Estimates for paving all the roads are $4.8 milion, with a yearly maintenance cost of $600,000; periodic oil spraying of the roads, to ~~ Ie =:~X¡:. ." -:,.;~o.~ .;-.. _ 516 Exercises keep down the dust, would ru approximately $800,000 anually, but an agreement to do ths as a short-term measure may not satisfy the environmenta agencies. 3. Taxation of company land: The land for the mine itself is outside city limits. However, the plant lies within city boundares, and curent taxes on the city land are $800,000 annually. The company has always felt that this taxation rate is excessive. In addition, several of the railroad spurs used to move ore into the plant, and out to the major railway line, cross city land. The city has continued to charge a flat rate of $400,000 annually for right-of-way use. It has occasionally offered the land for sale to the company at rates varing from $2.2 milion to $2.4 milion. Again, the company has felt that this rate is excessive. Both the company and the city believe that if some resolution could be obtained on these three major issues, the remaining problems could be easily resolved, and Twin Lakes would agree to keep the mine open. Exercise 2: Tony taxpaer´s return has come up for audit by the Internal Revenue Service (IRS). He took some deductions this year for an office in his home. Amelio Auditor at the IRS has disallowed that deductions and invited Tony to come to the office to discuss that item as well as a few other items on the return. Tony´s profession is tax consulting, and he listed his occupation on his return as attorney. Tony has taken several deductions this year that might be considered aggressive; however Tony believes that he has done no wrong. In fact, he thinks he is being singled out due to his profession. He is short on money and is worried about paying any additional assessment the IRS may make. Therefore, he is planning on giving up the office deduction in order to close the audit as quickly as possible. Amelio has never seen a home office deduction that was proper except for his own during his pre-IRS days as an independent consultant. 1. Explain how perception affected each party´s negotiation goals.
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Explanation & Answer

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Running Head: CHOICE OF STRATEGY

Choice of Strategy
Student’s Name
Institutional Affiliation

1

CHOICE OF STRATEGY

2
Choice of Strategy

Introduction
Strategic choice is the key strategy making formulation step as it is based on making
realistic decisions in strategic solving of negotiations or arguments. Strategic decision making is
of high moral conduct in an organizational context requiring considerable discretion in choice
making. Through strategic planning and mode of choice execution, there is a corporate strategy
created for a firm involved. Thus, the ultimate strategic choice is fundamental for corporate
performance and attaining the objectives and goals of an organization. In this analysis, the choice
of strategy is a feasibility approach that is fundamental to potential objective achievement as a
sustainable strategic advantage.
Discussion
Direct effects of goals on the choice of strategy have a formulated target with a realistic
plan to attain goals and objectives set for an organization. Set goals and objectives on direct
effects are based on the competitor’s strategy for an issue to be solved. On direct effects of
choice strategy, goals and objectives must be realistic, specific and measurable for execution to
every party ...


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